Trump orders Commerce, Treasury to come up with a plan for ‘sovereign wealth fund’

Trump orders Commerce, Treasury to come up with a plan for ‘sovereign wealth fund’



Trump orders Commerce, Treasury to come up with a plan for ‘sovereign wealth fund’

President Donald Trump has ordered his Secretary of the Treasury and the Secretary of Commerce to come up with a plan for establishing the nation’s first sovereign wealth fund.

According to the president, joining the league of nations that maintain a wealth fund will enable the U.S. government to “maximize the stewardship of our national wealth for the sole benefit of American citizens.”

“To this end, it is in the interest of the American people that the Federal Government establish a sovereign wealth fund to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic security for future generations, and promote United States economic and strategic leadership internationally,” Trump wrote in his order.

The order directs Treasury Secretary Scott Bessent and incoming Commerce Secretary Howard Lutnick to report back to him in 90 days on their plan, including how it will be funded, where it might make investments, how funds should be structured, and a governance framework.

“The plan shall also include an evaluation of the legal considerations for establishing and managing such a fund, including any need for legislation,” Trump wrote.

According to the International Forum of Sovereign Wealth Funds, there are currently at least 90 countries that maintain a sovereign wealth fund, usually backed by minerals or oil and funded through a budget surplus (which the U.S. most definitely does not have). In total, those funds account for more than $8 trillion in global assets.

The IFSWF defines a sovereign wealth fund as “having three characteristics,” most notably that it is “owned by the general government, which includes both central government and sub-national governments.” Funds from a sovereign wealth fund are used for “investments in foreign financial assets” and “they invest for financial objectives.”

Trump says one of the objectives of the U.S. fund, if it comes to be, might be to buy Tik Tok.

“I have the right to do that. We might put that in the sovereign wealth fund, whatever we make or we do a partnership with very wealthy people, a lot of options,” Trump said.

Speaking from the White House after Trump signed the executive order directing the creation of the fund, Bessent suggested it would take upwards of a year to establish. Lutnick said it’s a chance to leverage the U.S. economy for the taxpayers.

“The extraordinary size and scale of the U.S government and the business it does with companies should create value for American citizens,” Lutnick said.

Trump noted it’s “something we’ve never had.”

“Other countries have sovereign wealth funds and they’re much smaller countries and they’re not the United States,” the U.S. President said.


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